(11 December 2025 – United Kingdom) Starling Bank is assessing the acquisition of a UK lender in a bid to boost its corporate lending capacity and deploy its £12 billion in customer deposits more profitably.
As reported in the FT, the bank is reviewing several targets, with one source describing the potential deal as “substantial”.
The move reflects Starling’s push to diversify income beyond earning interest on deposits at the Bank of England, investing in securities, and mortgage lending via Fleet — the specialist lender it bought in 2021.
Analysts say Starling’s lending has not kept pace with its deposit growth. Although Starling considered expanding organically, insiders say it sees acquisition as a faster route.
The digital bank has been linked to takeover interest before, including an approach by SME lender Shawbrook earlier this year, though no deal materialised. People familiar with the strategy say Starling is focused on acquisitions rather than mergers, potentially involving cash or a mix of cash and shares.
Founded in 2014 by Anne Boden, Starling has faced criticism for its Covid-era lending and was fined in 2024 for “shockingly lax controls” over financial crime. The bank says it has since strengthened its risk framework.
Alongside potential UK deals, Starling continues to pursue international expansion. Its banking-as-a-service platform, Engine, is gaining traction with clients in Australia, Romania, and most recently Canada’s Tangerine Bank. The group is also considering a US acquisition and a possible future IPO.
Chief executive Raman Bhatia told the FT Global Banking Summit that Starling aims to accelerate growth with more targeted acquisitions: “We have focused on high-quality acquisitions but now we want to turbocharge that engine in the UK… there is so much to do here in terms of market share and growth expansion.”
The bank is also open to acquiring a European business within three to five years.